Ivanhoe Company borrows $48,000 on July 1 from the bank by signing a $48,00O, 14%, 1-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Ivanhoe Company borrows $48,000 on July 1 from the bank by signing a $48,00O, 14%, 1-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ivanhoe Company borrows $48,000 on July 1 from the bank by signing a $48,000, 14%, 1-year note payable.
(a)
Prepare the journal entry to record the proceeds of the note.
(b)
Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end
of the year.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries
in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
July 1
Dec. 31
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